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What is the NSP? $3.92 billion HUD grant on September 27, Additional $2 billion allocated in 2009 Stimulus. Provides emergency assistance to state and local governments. Encourages acquisition and redevelopment of foreclosed properties. Grantees have 18 months to obligate funds and four years to expend them.

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Survey Structure System-wide, written survey questions. Conducted with officials implementing NSP. Responses are entered into a database. NSP case studies in selected areas. Creation of a final report on NSP. Circulation of report throughout system.

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Crunch Time Deadline to obligate funds is September 18, Money not obligated by then can be lost. What if you can’t buy REO properties in time? Scenario One: Need to contract with lender before home is sold to private investor. Scenario Two: Need to obligate funds by deadline or lose money to buy homes in future.

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Some Relief Conditional Contracts: Before: HUD frowned on conditional contracts. Required reviews could take 60 to 90 days. Now: HUD will allow conditional contract language for environmental reviews. Contracting with Third Party to Buy Homes: Before: Money not committed to purchase contracts by deadline could be forfeited. Now: HUD expected to allow communities to obligate funds by contracting with third-party to buy homes.

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For More Information Federal Reserve Bank: U.S. Housing and Urban Development: NSP Data: National Community Stabilization Trust: